Activision gets Candy Crush in tax-saving US$5.9 billion deal

Los Angeles

ACTIVISION Blizzard Inc's plan to buy the Dublin-based maker of Candy Crush Saga for US$5.9 billion not only gives it access to the fast-growing mobile gaming industry, it will help save taxes.

By using US$3.6 billion of cash stored outside the US to help finance the acquisition of King Digital Entertainment plc, Activision will save about US$1 billion in taxes it would have had to pay to repatriate the money, according to tax consultant Robert Willens. Investors, who initially sent Activision shares down as much as 6.3 per cent, reversed course, driving up the price by 3.6 per cent to US$35.85 at Tuesday's close in New York.